Standardisation of Tax Distribution Statement

August 18th, 2011

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Last week, we receive this email from one of our readers,

Dear Editor,

I initiated the project in 2008 at the time of economic crisis with a conscience to alleviate the burden of investors who have investment in managed funds. It is done by removing the inefficiency in the existing system through the unification the tax distribution statement. On a conservative estimate, the project could save the community at least $348 million a year. I have prepared the executive summary and the proposed tax distribution statement format for your reference. I could send it via email upon your request.

I have received support from 8 out of the top 100 accounting firms in Australia. If I could receive the endorsement from ATO, my supporters will fund the project. Therefore there is no funding requirement from ATO. I believed that was clear from the start. However, ATO took nearly 2 years to response to my proposal and requested that I resubmitted another proposal with Tax Issues Entry System because of the soon release the Henry review. I did prepare another proposal that incorporated the change that was adopted by the government. However, I was told by email that the Tax Issues Entry System was not the right venue but no alternate venue was suggested.

Eventually I bought my proposal to the attention of the Prime Minister, Treasurer, and all the Senators. I was able to get an answer from the Assistant Treasurer. However, to my disappointment, the case was referred back to ATO. I have spoken to the officer whose name was printed on the letter. When I spoke to him, I was told that he was not senior enough to even make any changes. However, he appreciated of the work that I had done.

Senator Fiona Nash and Shadow Assistant Treasurer are supportive of the project but they are not the main party which could authorise the change. To make the project a reality, I am down to my last resource that is going to the media and getting public support.

I hope you find the matter of interest. If you have further question don?t hesitate to contact me.

Kind regards,

Faliana Lee

If you are interested in this cause, please feel free to leave a comment on this post. If you want to see Faliana’s proposal, please click here.

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  • Schon G Condon

    Well done

    This is a critical necessity to improve both the reporting and the recording of financial information. Not to mention the significant saving to the industry and the community as a whole.

    Schon G Condon

  • David Barton

    Faliana

    The Financial Services Council Tax Working group in conjunction with the ATO publishes tax reporting standards each year which all fund managers comply with. Unfortunately this standisation is currently only between fund managers and platform providers. A simple solution would be for fund managers to post this standradised format on their website for investors to access. FSC website with contact details is http://www.fsc.org.au/policy/tax.aspx

    Regards

    David